VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Sri Lanka anticipates restructuring $17 billion out of a total $41.5 billion of foreign debts within a five-year term, its president said on Tuesday.

President Ranil Wickremesinghe also said restructuring of local debt will have no impact on the stability of the country's banking system. (Reuters)

Japan's Finance Minister Shunichi Suzuki kept up verbal warnings on Tuesday against the yen's depreciation, saying he would respond appropriately if currency moves became excessive.

Suzuki's latest warning shot came as the dollar traded at 143.43 yen , down 0.06% from late U.S. levels. Japanese officials have sounded the alarm in recent days over rapid weakening of the currency.

"Sharp and one-sided moves" were observed recently in the currency market, he added.

Though he gave little clue whether Japan would intervene to back the yen, the tone of his warning was not so sharp as last year's, when he vowed decisive steps because he was deeply concerned about the weak currency.

"It was important for currencies to move in a stable fashion, reflecting economic fundamentals," Suzuki told reporters after a cabinet meeting.

"We will closely watch currency market moves with a strong sense of urgency and will respond appropriately if the moves become excessive."

A weaker yen boosts profits for exporters and companies with overseas operations, but on the other hand, higher import bills weigh on companies and consumers.

With both positive and negative effects it is difficult to say which factors outweigh the rest, Suzuki said.

"Rising prices have become a big policy issue," he added. "We will closely watch price trends and impacts on people's livelihood and businesses."

On Tuesday, Japan's top currency diplomat Masato Kanda retained his post for a second straight year in an annual reshuffle, as a jittery market requires Kanda's ability to intervene to turn the tide in currencies.

Suzuki did not elaborate on the reason for retaining Kanda, but called him "the right person in the right job".

He added, "Japan needs to keep close co-ordination with G7 and other countries concerned. We take into account the experience and human networks Kanda has gained through his job."

Under Kanda, Japan made rare interventions last September and October to stem weakness in the yen that had carried it as low as just below 152 against the dollar.

Speculation is rife that Japanese authorities may intervene again to support the yen if it falls to 145 to the dollar, near a level that prompted intervention in September. (Reuters)

Thailand's exports contracted less than expected in May, as higher industrial goods shipments and a weakening baht helped offset some of the impact of sluggish global demand, the commerce ministry said on Tuesday.

Customs-based exports, a key driver of Thai growth, declined 4.6% in May from a year earlier, beating a forecast for an 8% year-on-year drop in a Reuters poll. Exports jumped 12% from April.

"A positive factor for overall exports was the weakening baht," Keerati Rushchano, the ministry's permanent secretary, said in a press briefing.

The baht has depreciated 1.8% against the dollar so far this year.

The global economic outlook should also improve, which will be positive for exports from now until the end of the year, Keerati said. The ministry maintains its target of 1%-2% annual export growth for 2023, he added.

While global economic uncertainty has weighed on demand, the global manufacturing sector has shown signs of recovery from production chain disruptions, the ministry said in a statement.

Exports of industrial goods rose 1.5% in May from a year earlier, picking up for the first time in eight months, helped by higher shipments of automobiles and semiconductors.

Shipments of agricultural goods, however, fell 27% in May from a year ago, with rubber down 37% year-on-year. But rice exports jumped 85% from May 2022.

Exports to the United States rose 4.2% year-on-year last month, while shipments to Japan fell 1.8%. Exports to China slumped 24% year-on-year due to the country's uncertain economic recovery.

Thailand posted a trade deficit of $1.8 billion in May versus a forecast deficit of $300 million, with imports showing a 3.4% year-on-year drop.

For the January-May period, exports declined 5.1% from a year earlier, imports were down 2.5% and the trade deficit stood at $6.4 billion. (Reuters)

VOInews - Jakarta - The General Election Commission (KPU) RI said that the uncertainty of the electoral system is one of the reasons 89.7 percent of prospective DPR RI members for the 2024 Election have not met the document requirements.

"Yes, they are waiting for the certainty of the electoral system which is in the process of judicial review," KPU member Idham Holik said when confirmed in Jakarta on Tuesday.

Idham said that when the registration of candidates for DPR RI members took place on May 1-14, the Constitutional Court (MK) was indeed holding a judicial review of Law Number 7 of 2017 concerning General Elections (Election Law) related to the open proportional system.

So, he continued, at that time the election system had the potential to be changed to a closed proportional system.

The Constitutional Court decided that the 2024 elections would still use an open proportional system on July 15, 2023 or a month after the closing of registration for DPR candidates.

In addition to the electoral system, Idham added that as many as 9,260 people or 89.7 percent of DPR candidates have not met the requirements for nomination documents because they and their supporting political parties are constrained by time in preparing the files. (VOI/Akbar)